Canadian 40-year amortization calculator
The 40-year amortisation, tied to CMHC MLI Select, lowers your payment and lifts cash flow. It also costs more interest over time. Compare 40 years to 30 on your numbers.
The 40-year path is one lever. BrickROI runs them all.
BrickROI runs the 40-year MLI Select path next to the conventional 30-year path on your real listing, with the points, the DSCR at 1.10, the premium, and a lender-ready PDF. See which path wins. Paste a Canadian listing and find out in two minutes.
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What the 40-year path does to a deal
A 40-year amortisation spreads your loan over more time. The same loan, the same rate, but ten extra years to pay it back. The payment drops, and for an investor that drop is the whole point. A lower payment means more monthly cash flow, and it means a better DSCR, because DSCR is income divided by the debt payment. Lower the payment and the ratio climbs.
In Canada this path is not a free option on any mortgage. It is tied to CMHC MLI Select, the points program for multi-unit residential of five units or more. You earn the 40-year term by scoring enough points on energy efficiency, accessibility, and affordability. A US-built tool will not show you this path at all, because it does not carry the Canadian programs.
The cost of the longer term
The trade is real. Over the full life of the loan, 40 years costs more total interest than 30, because the balance falls more slowly. You also build equity more slowly in the early years. So the 40-year path lowers your cost today and raises it over the long run. For a thin deal that needs the cash flow now, that can still be the right call.
When the 40-year path saves a deal
- A multi-unit DSCR sitting just under the lender's bar. The lower payment can lift it over.
- A deal with strong long-term upside but tight first-year cash flow.
- A purchase where the MLI Select points are within reach through energy or affordability commitments.
40-year amortisation questions
Who can get a 40-year amortisation in Canada?
The 40-year path is tied to CMHC MLI Select, the points-based program for multi-unit residential of five units or more. It is not a standard option on a typical owner-occupied mortgage. You earn it by scoring enough points on energy, accessibility, and affordability.
How much does a 40-year amortisation lower my payment?
Stretching from 30 to 40 years lowers the monthly payment because the loan spreads over more time. The exact saving depends on the rate and loan size, but it is often a few hundred dollars a month. This calculator shows the gap on your numbers.
What is the catch with 40 years?
You pay more total interest over the life of the loan, since the balance falls more slowly. You also build equity more slowly. The trade is lower monthly cost now for higher lifetime cost and slower paydown.
Why do investors want the 40-year path?
A lower payment lifts cash flow and DSCR at the same time. For a thin multi-unit deal, the 40-year amortisation can be what turns a DSCR below the lender's bar into one that clears it. That can make a dead deal live.